Shares of HCL Tech (Hindustan Computers Limited), India's third-largest software services firm, dropped by 9.58% to a low of ₹1,303 on the National Stock Exchange (NSE) following disappointing Q4 results. The company reported a 4.2% increase in consolidated net profit for the March quarter, amounting to ₹4,488 crore compared to ₹4,307 crore in the previous year. However, revenue from operations rose only 12% year-on-year to ₹33,981 crore, falling short of market expectations. HCL Tech's guidance for FY27 indicates revenue growth of only 1% to 4% in constant currency terms, significantly lower than earlier projections.

Brokerages reacted swiftly, with Nomura maintaining a buy rating but reducing its target price from ₹1,700 to ₹1,600, citing weaker growth expectations due to client-specific challenges. JPMorgan downgraded its target price to ₹1,370 from ₹1,419, while HSBC cut its target to ₹1,480 from ₹1,560, highlighting the impact of budget cuts from major US telecom clients. Motilal Oswal Financial Services retained a buy rating but lowered its target price to ₹1,650. Analysts pointed out that the company's performance was affected by reduced discretionary spending and project cancellations, particularly in the telecom sector, and geopolitical uncertainties affecting Europe. The outlook for HCL Tech remains cautious as it navigates these challenges.